Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted: Costs (per year) Program Director salary Part-time Assistants Variable cost per child $ 49,000 $ 27,000 $1,200 TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($48,000) and a local Private University Endowment Fund ($30,000). Calculate the expected surplus or deficit from operations given the above information.
Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The following relevant costs are expected if the program is accepted: Costs (per year) Program Director salary Part-time Assistants Variable cost per child $ 49,000 $ 27,000 $1,200 TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program, funding will be received from the City Chamber of Commerce ($48,000) and a local Private University Endowment Fund ($30,000). Calculate the expected surplus or deficit from operations given the above information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Triad Children's Center(TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is looking at adding a new education program for grade school children who are having difficulty with the reading and math skills. The following relevant cost are expected if the program is accepted:
Transcribed Image Text:Triad Children's Center (TCC), a non-profit organization, uses relevant cost analysis to determine whether new services are desirable. TCC is
looking at adding a new educational program for grade school children who are having difficulty with their reading and math skills. The
following relevant costs are expected if the program is accepted:
Costs (per year)
Program Director salary
Part-time Assistants
Variable cost per child
$ 49,000
$ 27,000
$ 1,200
TCC estimates that a maximum of 40 children will participate in this program in the first year. If TCC decides to implement this program,
funding will be received from the City Chamber of Commerce ($48,000) and a local Private University Endowment Fund ($30,000).
Calculate the expected surplus or deficit from operations given the above information.
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